After $123M Settlement, Jump Crypto Says ‘Let’s Build,’ But Crypto X Isn’t Convinced
In a move that’s stirring up just as much side-eye as it is interest, Jump Crypto has officially announced its reintroduction, pitching itself as a champion of open-source, decentralized infrastructure.
The announcement dropped on June 18 via X, with the firm calling on builders and regulators to help shape the future of finance. But for many in the crypto community, the timing, and the message, are hard to separate from the baggage Jump still carries.
Legal shadows and market fallout
The reintroduction comes just months after Jump Crypto’s subsidiary, Tai Mo Shan, agreed to pay $123 million to settle charges with the U.S. Securities and Exchange Commission (SEC).
The case centered on misleading statements tied to TerraUSD (UST), the algorithmic stablecoin that infamously lost its peg in 2022.
UST’s collapse erased roughly $45 billion in market cap and triggered a cascade of losses throughout the crypto industry. Jump Crypto allegedly helped prop up UST with $20 million in trades while reportedly pulling in $1 billion in profits during the crisis, a move that hasn’t sat well with many.
Further complicating matters, Jump Crypto is currently being sued by Fracture Labs over a separate allegation involving a “pump and dump” scheme around the DIO token.
Meanwhile, U.S. regulatory agencies, including the Commodity Futures Trading Commission (CFTC), are said to be keeping a close eye on the firm.
Building through the backlash
Despite its rocky regulatory history, Jump has made notable contributions to decentralized infrastructure, especially through projects like Pyth and Wormhole.
Pyth, featured in a 2024 Solana case study, supplies smart contracts with real-time data, while Wormhole bridges Pyth across 45 different blockchains, expanding access to off-chain information in DeFi ecosystems.
These tools aim to tackle the well-known “oracle problem.” Still, sentiment online has been mixed at best.
Some users on X greeted the reintroduction with memes and skepticism, referencing past incidents with sarcasm rather than support.
Whether the company’s decentralization pivot will be enough to win back trust remains to be seen, but it’s clear that Jump’s fresh start is going to take more than a reintroduction.
